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Purportedly Taxpayer-Funded Deloitte Report for Australian Government Contains Alleged AI-Generated Citations and Fabricated Legal Quote

Occurred
Aug 22, 2025
Published
Oct 7, 2025
Source
AI Incident Database

Summary

Australian academics reportedly identified fabricated references and a misattributed legal quote in a $439,000 Deloitte report for the Department of Employment and Workplace Relations on welfare compliance. Deleted citations allegedly referred to non-existent works, and a Federal Court judgment was misstated. Deloitte later acknowledged limited use of generative AI in preparing the report and issued a corrected version with a partial refund.

Developers

  • Large language model developers

Deployers

  • Deloitte

Harmed parties

  • Scholars erroneously cited
  • Lisa Burton Crawford
  • Janina Boughey
  • Government of Australia
  • General public of Australia
  • Epistemic integrity
  • Department of Employment and Workplace Relations (DEWR)
  • Carolyn Adams
  • Academics
  • Deloitte

Tags

  • response

Classification

Category confidence: 90%
Severity confidence: 85%

Rationale: Generative AI hallucinations led to fabricated citations in a government report, causing reputational and financial harm.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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